$3.5 Million Available To Develop Grid Modernization Projects

Supports Municipal Electric Utilities and Rural Cooperatives in Developing Proposals that Advance Reliability of Infrastructure and Access to Affordable Clean Energy

April 5, 2024

Governor Kathy Hochul today announced $3.5 million in technical assistance funding is now available to support the development of electric grid modernization project proposals through the state’s Grid Modernization Program. This funding will support interested municipal electric utilities and rural electric cooperatives in developing proposals that advance the reliability of grid infrastructure and access to affordable clean energy. Today's announcement supports the Climate Leadership and Community Protection Act goals to transition to 100 percent zero-emission electricity by 2040.

“With the support of the Biden Administration, we are advancing a more resilient, modernized and connected electric grid,” Governor Hochul said, “This funding will help the State identify the best approaches for grid modernization projects that ensure New Yorkers always have access to affordable and reliable power.”

Today’s announcement represents the pre-development step to help municipal electric utilities (MUNIs) and rural cooperatives (COOPs) plan for an upcoming $24 million funding opportunity made possible through U.S. Department of Energy (DOE) award to New York State last fall. The $24 million, expected to be made available this summer, will be administered by the New York State Energy Research and Development Authority (NYSERDA) over a two-year period through a competitive solicitation process to select grid modernization projects.

New York State MUNIs and rural COOPs may now apply here on a first come, first served basis until 3:00 p.m. on December 1, 2027 for a one-time maximum technical assistance award of up to $200,000 per applicant. This assistance can be used to support the technical analyses needed to evaluate potential projects, grant writing assistance for implementation funding, and development of a metrics reporting system to evaluate project success.

NYSERDA will host an informational webinar here on April 12 from 2:00 p.m. to 3:00 p.m. for those interested in learning more about the technical assistance funding opportunity.

Doreen M. Harris, President and CEO NYSERDA said, “NYSERDA is pleased to offer technical assistance support for municipal utilities and rural COOPs to plan for necessary improvements and upgrades to the resiliency of their community’s grid infrastructure. By providing this up-front support, we are ensuring future proposals submitted for consideration represent projects that will advance a just transition to a zero-emission electric grid while increasing access to clean energy for New Yorkers.”

MUNIs and rural COOPs that do not have technical assistance needs may propose smaller implementation projects that fall within the allowable maximum award amount including projects that align with focus areas detailed in the solicitation, which will strengthen the capacity of New York State’s grid systems and communities to prepare for current and future climate risks. Applicants will be required to directly procure any contractors needed for technical services, which may include engineering, economics, and grant application services. NYSERDA will review all contractors working with MUNIs and rural COOPs as part of this activity to ensure they meet the Authority’s and federal contractor standards.

New York Association of Public Power President David Leathers said, “Strengthening our local distribution infrastructure is crucial to our public power mission of providing safe, affordable, and reliable electricity for our customers, members, and broader communities. The NYAPP utility and cooperative members appreciate this funding opportunity provided by NYSERDA through the Bipartisan Infrastructure Law that will support continued system investments to enhance the resiliency and reliability of our public power electric systems throughout New York State.”

New York was one of nine states and five tribal nations that were awarded a combined total of $125 million last September as the seventh cohort of Grid Resilience State and Tribal Formula Grants. The $3.5 million made available today is part of New York’s 15% matching funds required by DOE and sourced through the Regional Greenhouse Gas Initiative. To learn more, visit NYSERDA’s website and the Grid Deployment Office’s website .

Funded through the Bipartisan Infrastructure Law and administered by DOE’s Grid Deployment Office , the Grid Resilience State and Tribal Formula Grants distribute funding to states, territories, and federally recognized Indian Tribes, including Alaska Native Regional Corporations and Alaska Native Village Corporations, over five years based on a formula that includes factors such as population size, land area, probability and severity of disruptive events, and a locality’s historical expenditures on mitigation efforts. Priority is given to projects that generate the greatest community benefit providing clean, affordable, and reliable energy.

New York State's Nation-Leading Climate Plan

New York State's climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues to foster a green economy across all sectors and ensures that at least 35%, with a goal of 40%, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation’s most aggressive climate and clean energy initiatives, New York is advancing a suite of efforts – including the New York Cap-and-Invest program (NYCI) and other complementary policies – to reduce greenhouse gas emissions 40% by 2030 and 85% by 2050 from 1990 levels. New York is also on a path to achieving a zero-emission electricity sector by 2040, including 70% renewable energy generation by 2030, and economywide carbon neutrality by mid-century. A cornerstone of this transition is New York's unprecedented clean energy investments, including more than $40 billion in 64 large-scale renewable and transmission projects across the State, $6.8 billion to reduce building emissions, $3.3 billion to scale up solar, nearly $3 billion for clean transportation initiatives and over $2 billion in NY Green Bank commitments. These and other investments are supporting more than 170,000 jobs in New York’s clean energy sector as of 2022 and over 3,000% growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and light-duty trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York’s climate action with more than 400 registered and more than 130 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State’s largest community air monitoring initiative in 10 disadvantaged communities across the State to help target air pollution and combat climate change.